# FV

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Returns the future value of an investment based on periodic, constant payments and a constant interest rate.

**Syntax**

*FV* ( *rate* , *nper* , *pmt* ,pv,type)

For a more complete description of the arguments in FV and for more information on annuity functions, see PV.

**Rate** is the interest rate per period.

**Nper** is the total number of payment periods in an annuity.

**Pmt** is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument.

**Pv** is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.

**Type** is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

Set type equal to |
If payments are due |
---|---|

0 |
At the end of the period |

1 |
At the beginning of the period |

*Remarks*

Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

*Example 1*

Rate |
Nper |
Pmt |
PV |
Type |
Formula |
Description (Result) |
---|---|---|---|---|---|---|

6% |
10 |
-200 |
-500 |
1 |
=FV(Rate/12, Nper, Pmt, PV, Type) |
Future value of an investment with the specified arguments (2581.40) |

**Note:** The annual interest rate is divided by 12 because it is compounded monthly.

*Example 2*

Rate |
Nper |
Pmt |
Formula |
Description (Result) |
---|---|---|---|---|

12% |
12 |
-1000 |
=FV([Rate]/12, [Nper], [Pmt]) |
Future value of an investment with the specified arguments (12,682.50) |

**Note:** The annual interest rate is divided by 12 because it is compounded monthly.